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Shared-Track: A Handbook of Examples and Applications 53
track operation generally requires the freight railroad to relinquish dispatching and maintenance
control, the participation of freight rail owners gives freight interests a strong voice in deter-
mining when freight service will take precedence. Some freight service schedule adjustments
may be necessary, but it is the transit authority that must attempt to accommodate the freight
carrier's needs, or else risk having the process stalled. This possibility arises from the FRA require-
ment that conditional approval of any waiver petition requires the agreement of the prospective
freight tenant.
In several instances the transit system design shifted to require compliant vehicles to satisfy
the service needs of the freight railroad, while avoiding conflict with federal regulations. In most
cases, the compromise to use compliant equipment degraded the attractiveness of the transit
service to the public agency and its customers.
As a tenant of the transit system, the freight operator enjoys the use of a substantially upgraded
facility while it is simultaneously relieved of the burden of maintaining and operating its former
freight-only line.
3) Risks Are Managed by the Transit Agency
Risk management and insurance are part of the general administration of the shared-track
operator. Transit insurance packages generally cover all operations or all rail operations. For
the systems reviewed, there are no instances where separate liability insurance is provided for
shared-track, nor are there any where the freight railroad is required to carry liability insurance
for the passenger operation. However, private owners of freight lines are generally concerned
about the liability implications of introducing transit passenger operations on their freight-only
line. Therefore, the transit agency usually insures freight carriers against increased liability risks due
to the presence of passengers. In fact, two agencies (San Diego and NJ Transit) are self-insured.
It appears that if ownership, control, and maintenance of the shared-track line pass to the pas-
senger operator, the freight carrier may be better shielded from liability for accidents and injuries
along the line.
A. Agency liability is covered by existing agency insurance. In six out of eight currently opera-
tional or soon-to-be operational systems, the risk of accident and injury claims is managed
through an agencywide contract covering all aspects of the agency's operations. San Diego
MTS's insurance covers bus, trolley, and rail operations. San Diego NCTD's agreement
covers the proposed noncompliant service, as well as existing commuter rail and express bus
service. New Jersey Transit's (NJT) contract covers all aspects of NJT's operations. Both San
Diego and NJ Transit systems are self-insured. Maryland MTA's policy covers both its light
rail and subway operations.
B. Transit agency insures against the perceived increased risks for freight operation. Despite
research that shows the risks are minimal, many freight operators require extra indemnity
against transit accidents. On the River LINE, NJ Transit pays Conrail explicitly for an increase
in Conrail's insurance fees due to the existence of a passenger operation on the Bordentown
Secondary. On the San Diego Trolley, the agency names the freight operator as an insured
party in their policy. On the San Diego NCTD, the agency is assigned most of the liability
for mishaps, even when the freight operator is found to be negligent. The risk of the freight-
passenger collisions is thus essentially insured through the agency's policy.
4) Pressure to Commingle Is Heaviest on Lines with Higher Freight
Densities*--A Review of Different Solutions
Where the route has strategic value as both a freight and transit corridor, and/or where the
freight train service density is more than one roundtrip per day, there is likely to be greater pres-
sure to commingle transit and freight trains.
